AAFAF report: Gov’t bank accounts increase 1.8%

By The Star Staff

Puerto Rico’s government bank accounts reached $21.09 billion as of Jan. 29, a 1.8% increase when compared to the previous month, a report from the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF by its Spanish initials) said.

The increase is important because the federal Financial Oversight and Management Board has said it plans to take about $7 billion for a cash payment to creditors as part of the latest commonwealth plan support agreement, or PSA.

The Treasury Single Account (TSA), which is the government’s main account, increased to $10.3 billion in January compared to $9.8 billion in December.

The report, published to the markets earlier this week, showed that bank accounts increased by $368 million from $20.73 billion on Dec. 31, 2020.

The number reflects a $442 million increase in the central government’s TSA balance, a $268 million increase in public corporations and legally separate entities, a $13 million increase in restricted accounts and/or those subject to Title III proceedings, and an $8 million increase in pension-related accounts.

The AAFAF report showed a $362 million decrease in central government non-TSA accounts.

The bank balance of the Puerto Rico Highways and Transportation Authority, which is one of the entities in Title III bankruptcy under the federal Puerto Rico Oversight, Management and Economic Stability Act (commonly known as PROMESA), declined to $310.2 million as of Jan. 29, from $320 million as of Dec. 31, 2020, according to the document.

The bank account balance of the Puerto Rico Electric Power Authority, another entity that is in bankruptcy under Title III, increased to $749.6 million in January, from $723.9 million in December.

The report also included the bank account balances for other instrumentalities such as the Puerto Rico Aqueduct and Sewer Authority, which decreased to $794.7 million in January from $837.2 million in December. The water authority recently reached a debt deal with its creditors.

The University of Puerto Rico’s bank balance decreased to $322.4 million in January from $331 million in December.

The Medical Services Administration’s bank balance decreased to $312.6 in January from $519.6 in December.

The AAFAF filing was an unaudited summary of the island government’s and its instrumentalities’ account cash balances. The filing excluded the account balances for the legislative and judicial branches, as well as those for the Government Development Bank for Puerto Rico, municipal funds and investment accounts.

Meanwhile, the Puerto Rico Sales Tax Financing Corporation’s account balance decreased slightly, by $410,000, to $20.5 million in January, the document showed.

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